MGM Resorts International on Tuesday announced it will sell its Bellagio Hotel and Casino in Las Vegas to the Blackstone Group, and then lease back the property, in a $4.25 billion deal, according to Bloomberg News.
However, MGM Resorts will lease it back from Blackstone Group for initial annual rent of $245 million and continue to operate the property.
MGM Resorts will receive a 5% equity interest in the joint venture and cash of about $4.2 billion. The transaction is expected to close in the fourth quarter of 2019, subject to certain closing conditions.
The Las Vegas-based casino company also agreed to sell the Circus Circus property in Las Vegas, along with 47 adjoining acres, to real estate mogul Phil Ruffin for $825 million.
MGM has been under investor pressure to cut its debt.